Lendlease and Haringey Council have put plans for a £2bn development partnership on hold until after a High Court decision on whether the joint venture will face a judicial review, Construction News has learned.
The London borough has agreed to halt plans to launch its long-awaited Haringey Development Vehicle (HDV) after being warned that the council’s leader Claire Kober could face an injunction preventing her from forging ahead with the proposals.
The delay to the partnership comes as Lendlease added its name to the High Court action, which will be heard at the Royal Courts of Justice next week.
The legal claim was originally launched by Haringey resident Gordon Peters on behalf of the Stop the HDV campaign group against Haringey Council.
However, Lendlease has thrown its weight behind the legal battle to have the judicial review against the partnership dismissed. CN understands that the contractor has joined the case as an “interested party”.
In the submission of a skeleton argument against the council, Mr Peters claimed that Haringey had failed to “adequately consult local residents and businesses” over the formation of the new JV, which is split equally between the council and Lendlease Europe Holdings Limited.
In a summary of his argument, Mr Peters said: “I am unhappy with the HDV model and its governance arrangements as chosen by the council, and about the process followed including lack of consultation on this vehicle, loss of democratic control over the homes and other public assets involved, and the council’s failure to ensure that the HDV will comply in future with obligations such as the Human Rights Act, the Freedom of Information Act and the Public Sector Equality Duty.”
A spokesperson for Lendlease confirmed that it had joined in the legal action.
A spokesperson for Haringey Council said: “Lendlease has been named as an ‘interested party’ in the challenge, but the action is not against Lendlease.
“The council and Lendlease will sign the agreements to set up the HDV at a time when it is legally appropriate to do so.”
The new development partnership was approved by Haringey council’s cabinet in July. However, the JV has been criticised by both MP for Tottenham David Lammy and the GMB union.
The council has stated that the HDV will create up to 6,400 homes, with at least 40 per cent of those homes classed as affordable. The proposals also include new school facilities, a health centre and a new town centre for Wood Green.
Earlier this month Lendlease appointed Selina Mason to a new role of director of masterplanning at the firm. Ms Mason is expected to oversee large-scale regeneration projects.
According to the contractor, the legal case will have no bearing on another project in the borough: a £1bn redevelopment adjacent to Tottenham Hotspur’s new stadium on High Road West.
Article originally appeared on Construction News
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